U.S. Treasury Operating Circular

The Investment Fund
Operating Circular (PDF, File Size 135 KB, uploaded 05/27/2016) documents
the responsibilities of the U.S. Treasury and the Federal Program Agencies
involving Government Account Series securities (GAS). The Operating Circular:

Communicates the policies and procedures of the U.S. Treasury.

Applies to all government investment funds except for deposit funds and investment funds managed by the U.S. Treasury.

Includes an operational reference manual and a securities offering circular.

Revisions to the Operating Circular

The Department of Treasury’s Operating Circular has been revised. The
Operating Circular outlines the responsibilities relating to government investment
accounts and investment in Government Account Series (GAS) securities.

There are five major updates to the operating circular, four of which are
immediately effective, and one is effective on November 3, 2008. The updates
are listed below:

The broadest change updated the Operating Circular to reflect the FedInvest system as the standard method for issuing investment and redemption instructions to the Bureau of the Fiscal Service (Fiscal Service). Paper investment/redemption forms may still be used as a contingency
if the agency is unable to access the FedInvest system.

The Operating Circular now applies to deposit funds that have specific
statutory language authorizing fund investments. Deposit funds
without specific statutory language would need an agreement with Treasury
to invest. If you have questions concerning this point, contact
the Fiscal Service.

The minimum investment requirement of $1,000 has been removed. The Treasury Department
now permits investments to the penny.

Rules and requirements for investing in Treasury special zero-coupon bonds
have been incorporated into this Operating Circular. A separate memorandum
of understanding is no longer required, however, the agency must first contact
the Fiscal Service before investing in zero-coupon bonds.

This Operating Circular contains a change to the interest rate formula
for determining the Overnight Certificate of Indebtedness. The revised
rate will be linked to the shortest regularly issued Treasury security,
which is, currently, the 4-week bill. The new rate will more closely
align with Treasury’s borrowing costs on publicly traded securities. This
new rate will take effect for overnight investments made on November 3,
2008.

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